Going It Alone
As a freelancer, contractor or a self-employed person, you have the option of becoming a sole trader to run your business, instead of setting up a limited company. This is a good option for someone who is just starting out, and isn’t sure that they want to commit to the long term limited company option.
When setting up your limited company there are many factors to consider; when will you have the time to complete your book keeping? When do you submit your annual returns? Do you need to register for VAT? How do you know what to pay yourself?How do you pay yourself? These are just a few of the many things we get asked by new limited company directors on a daily basis.
To ensure that you are fully aware of your business dealings, we talk you through it step-by-step. your psc will be there for you throughout your time as a company director with us.
We are here to help you maximise your earnings in the most tax efficient way possible whilst still remaining compliant and above board.
If you do chose to, go it alone you may run the risk of not getting your sales invoices across to your clients: resulting in you not getting paid, not completing returns on time: meaning you incur penalties, not completing vital paperwork or corresponding with the HMRC:meaning they will be chasing you.
your psc will cover all aspects for you so you don’t have to worry about the back office work, and can spend your time concentrating on what matters to you!
HMRC have their own rules for sole traders, and the biggest change when it comes to tax is that you don’t pay as you earn, you need to keep your taxes aside and you will receive a bill at the end of the year. You will be able to offset a wide range of business expenses that you’ve accumulated throughout the year too, so it’s important that you keep your records up to date (our cashbook can help with this).
your psc can provide accountancy and administration options to sole traders too, as well as advice and assistance on managing your contracts and invoicing. The best thing to do is talk to us – we’ll take the time to learn about your business and your preferred way of running it, and talk you through the different options available to you.
